Core Scientific Inc., one of the largest miners of Bitcoin, became the latest crypto company to file for bankruptcy as the industry reckons with a plunge in digital asset prices.
(Bloomberg) — Core Scientific Inc., one of the largest miners of Bitcoin, became the latest crypto company to file for bankruptcy as the industry reckons with a plunge in digital asset prices.
The Austin, Texas-based company filed its bankruptcy petition in Southern District of Texas, court papers show. It listed assets and liabilities of $1 billion to $10 billion each, respectively.
Core Scientific said in a regulatory filing in October that a slump in Bitcoin prices, high electricity costs, increased competition, and litigation with the bankrupt Celsius Network LLC had impacted its performance and liquidity. In July, Core Scientific entered into a $100 million common stock purchase agreement with B. Riley Principal Capital II.
A slew of crypto companies have sought bankruptcy protection this year as slumping token prices continue to weigh on the sector. Compute North Holdings Inc., a provider of data services for miners and blockchain companies, filed for bankruptcy in September, while crypto broker Voyager Digital Ltd. sought court protection in July.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
